Greater Providence Chamber looks to keep tax rates down

Rather than one big economic program, President Laurie White says the Greater Providence Chamber of Commerce will push for regulatory reform, business tax credits.

Paul Grimaldi Journal Staff Writer paulegrimaldi

Video: White interview

PROVIDENCE — Rhode Island’s business community is inclined in 2013 to protect ground gained in recent years and lay the groundwork for economic growth at some undefined future point.

The membership of the Greater Providence Chamber of Commerce considers keeping intact recent state income tax rate reductions among its primary goals for the upcoming legislative session. Along with that, Rhode Island’s largest business group wants to see a reduction in the amount of the corporate minimum tax and limits on its application. It also will push regulatory reform.

The Chamber will continue gathering and analyzing data on “knowledge economy” employment and businesses — jobs and entities in the life sciences, health care, technology and advanced manufacturing.

“We’re always mindful and very vigilant to preserve the gains that were made two years ago when we reformed the personal income tax system,” said Laurie White, the Chamber’s president.

She also said “a real problem in Rhode Island” is that the “permitting and the regulatory environment is viewed to be very punitive here.”

“There’s a considerable amount of defense, and I think it gets more difficult with each ensuing year because the state is so fragile and there is such turmoil and concern.”

Five years after the state fell into recession, the Chamber continues to be one of the groups looking for ways to energize the Rhode Island economy.

Yet, the group and its membership, which includes some of the state’s largest companies, law firms and institutions, plans only modest action next year — reducing or modifying the state’s $500 minimum corporate tax and changing regulations to allow transfer of research-and-development tax credits from unprofitable companies to entities that could use the credits to offset profits.

“It’s perceived as inappropriate nickel and diming,” White said of the tax during an interview at The Journal.

While the Chamber plays defense, business groups and foundations in cities elsewhere have committed large sums to spur economic development.

In Grand Rapids, Mich., a local business coalition joined with the municipal development agency to raise money and to build a $30-million indoor food market taking shape in that city.

In Harrisburg, Pa., a civic group helped found Harrisburg University of Science and Technology to seed a technology sector in the region.

In Akron, Ohio, the Knight Foundation announced on Dec. 18 a nearly $8-million commitment to help reshape University Park, a 50-block, mixed use area in the city center.

The Chamber supports formation of a joint Rhode Island College-University of Rhode Island nursing school in Providence, but the organization is not considering raising money for a building project it considers a key piece of its economic vision for the city. White said she has not spoken to House Speaker Gordon Fox, whose support is critical to that project, about the joint school in six months.

The Chamber did lobby heavily, and successfully, in 2012 for approval of the runway extension at T.F. Green Airport and against a City of Warwick lawsuit that delayed progress on that infrastructure project. It also helped persuade JetBlue to begin airline service at Green.

Yet, the Chamber has no action in mind for the Station District — 100 acres of privately owned land near the airport that Governor Chafee says is a building block for a revitalized state economy.

“We are more focused on the Knowledge District in Providence and working with our institutional partners in the city around what could occur in that area that would be catalytic,” White said.

The Chamber did put up $100,000 to help launch the next version of a well-regarded incubator program for entrepreneurs.

The Chamber joined start-up accelerator Betaspring, the University of Rhode Island and Brown University to form the “Founders League” to help entrepreneurs. Together, they’ll spend $235,000 over the next six months to get the program going and will work to find ways to fund the initiative permanently.